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House prices fall by 1.6% over the last year

House prices fall by 1.6% over the last year

Category: Mortgages

Updated: 12/07/2011
First Published: 12/07/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

House prices have fallen by 1.6% over the last year, official Government figures show.

Data from the Department for Communities and Local Government show that the average value of a home in the UK declined by 0.5% in May, to just over £203,500.

However, excluding London and the South East, the average UK price in May was £168,381, a fall of 2.6% over the previous 12 months.

There were large differences between losses in England , Wales , Scotland and Northern Ireland .

Northern Irish homeowners will want to forget the trends of the last year, as the average property in the country has fallen by 13.2%, down to £144,463.

In Wales, property declined in value by an average of 6.1% down to £140,399, while a home in Scotland has dropped to an average price of £160,359 (-2.5%).

England saw the least significant fall in house prices – helped by the resilient South East and London – with the average home falling by 1.3% in value.

It means that at the end of May, a buyer in England could have expected to buy a home for £211,243.

Unsurprisingly, London remains the English region where a home is least affordable. A buyer looking to secure a pad in the capital faces an average price of just more than £334,500, with prices well in advance in more popular and central locations.

In fact, London was the only location in the entire UK that recorded an annual rise in prices (1.0%).

The North East has the lowest average price in England , at £132,107, reinforcing the North-South divide in prices.

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